Suppose the current account of a country is in balance and the official settlements account equals 0. A new transaction occurs so that the current account is now in surplus, but the official settlements account does not change. From this we know that

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A current account surplus implies that the country is exporting more than it is importing, leading to an inflow of foreign currency. If the official settlements account remains unchanged, the capital and financial account must be in deficit to offset the surplus in the current account, maintaining the overall balance of payments equilibrium.

Suppose the Current Account of a Country Is in Balance